VZCZCXYZ0000
PP RUEHWEB

DE RUEHSJ #0653 2220104
ZNR UUUUU ZZH
P 090104Z AUG 08
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 9992
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY

UNCLAS SAN JOSE 000653 
 
SIPDIS 
 
DEPT FOR EEB/IFD/ODF, EEB/IFD/OIA; PLEASE PASS TO 
OPIC/VP/SF:KCHRISTENSEN; PLEASE PASS TO COMMERCE/FCS 
 
E.O. 12958: N/A 
TAGS: CS ECON EFIN PGOV PREL
SUBJECT: APPLICATION FOR OPIC FINANCE:  BAC SAN JOSE 
 
REF: SECSTATE 80569 
 
¶1.  SUMMARY:  Embassy San Jose supports OPIC's proposal for a 
$60 million loan to BAC San Jose, S.A.  The Econ and FCS 
Sections have reviewed the proposal and concluded that there 
were no reasons that the loan should not proceed (Reftel). 
END SUMMARY. 
 
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RECENT COUNTRY EVENTS 
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¶2.  Though the fiscal and consumer impact of rising fuel and 
food prices greatly concern the GOCR and the general 
populace, the Costa Rican economy continues to grow and is 
projected to expand by 4 percent in 2008.  The GOCR 
forecasted a small deficit for 2008 and is still on track to 
meet that target due to prudent budgeting by the Ministry of 
Finance. 
 
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STANDING OF BAC SAN JOSE 
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¶3.  Embassy review of the subject company -- BAC San Jose, 
its foreign sponsor (Carlos Pellas), and key shareholder 
investors -- did not produce any information linking the 
company and / or principals to terrorism, money laundering, 
corruption, or violations of law. 
 
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COMMENT 
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¶4.  Embassy San Jose believes that a program like this one, 
designed to provide lending to medium-sized businesses and 
low-middle income mortgage borrowers, is well-suited to local 
market demand.  In addition, the proposal may be of great 
assistance to these market segments in the likely scenario 
that the Costa Rican lending environment tightens over the 
coming months due to inflation rising higher than expected 
over the past six months.  We remind OPIC that USAID does not 
have an in-country economic development assistance team in 
Costa Rica.  (The lone in-country USAID mission is the Office 
of Foreign Disaster Assistance).  Hence, there is no USAID 
development staff to review the OPIC proposal. 
CIANCHETTE